Monday, 06 April 2020
If a hotel owner is unable to provide hotel services because the customers do not show up, he can, in principle, reclaim the VAT on the advance payments through the periodical VAT return. However, there is a difference between B2B and B2C-transactions. In a B2B-context, a credit note is required while in a B2C-transaction the hotel owner will have to proof that the VAT has been reimbursed to its customers.
In the event that the general terms and conditions stipulate that advance payments will retain as a compensation for the damage that is suffered, there are good arguments to reclaim the VAT that has already been paid.
If you have any questions on this subject, please contact the authors of this article.
Tour & Taxis
Havenlaan|Avenue du Port 86C B.419
BE-1000 Brussels
F +32 2 773 40 55
Grotesteenweg 214 B.4
BE-2600 Antwerp
F +32 3 443 20 20
23, Boulevard Joseph II
LU-1840 Luxembourg
F +352 28 66 96 58
